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Nakheel says 91 pct trade creditors agree to debt plan
Trade creditors will receive 40 percent in cash and 60 percent repayment through an Islamic bond with a 10 percent return.
December 29, 2010 2:23 by Reuters
Troubled Dubai developer Nakheel, a unit of conglomerate Dubai World, on Wednesday said 91 percent of trade creditors have agreed to its restructuring proposal.
“… 91 percent(by value) of trade creditor accounts payable has been finalized in signed Restructuring undertakings,” a Nakheel spokesperson said in a statement.
The company said it will continue to work to achieve the required 95 percent “restructuring threshold.”
Under the terms of its $10.9 billion restructuring proposal, trade creditors will receive 40 percent in cash and 60 percent repayment through an Islamic bond with a 10 percent return.
The firm had earlier said that 85 percent of its trade creditors agreed to the debt deal.
(Reporting by Praveen Menon; Editing by Dinesh Nair)